Cumulative system of pensions will be used in Azerbaijan since 2010, Trend reports quoting Salim Muslimov, chairman of State Social Security Fund (SSSF).
According to SSSF calculations, cumulative part is formed by retaining some mandatory amount from employees salary. Social contribution fee today is 3%, but Muslimov does not rule out the possibility of employer-employee correlation modification in 2010.
After 2010, aforesaid cumulative part will be deposited in bank within 3 years. Upon completion of this period, insured get an opportunity to use these funds as investments. The procedure and duration of these investments shall be governed by individual law to adopt later
, said Muslimov.
Upon the completion of this three-year period, insured people are provided a list of companies to deposit their cumulative part of pensions.
Not all citizens are eligible to cumulative part of pension. Only persons born after 1973 may receive it, said chairman of State Fund. The law envisages the right for cumulative part of pension only for persons with 25 years of seniority.
Insured may receive cumulative part of pension only upon reaching pension age. However, some exceptions are possible as well. In particular, insured may take such amount prior to retirement if he changes his citizenship or passes away.